Rajshree Polypack Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Rajshree Polypack Limited reported a mixed Q3 FY26, with a marginal 1.49% YoY revenue decline to ₹71.62 crores, primarily due to domestic market challenges. However, profitability significantly improved, with EBITDA growing 13.82% to ₹10.30 crores and PAT up 25.38% to ₹2.13 crores, driven by strong export growth and operational efficiencies. The company is focused on cost reduction initiatives and expects domestic volume recovery and JV profitability in the coming quarters, despite accumulated losses in the Olive Ecopak JV.

Highlights

  • EBITDA grew 13.82% YoY to ₹10.30 crores in Q3 FY26, with margins improving to 14.38% from 12.45% in Q3 FY25.

  • Profit After Tax increased 25.38% YoY to ₹2.13 crores in Q3 FY26.

  • Export revenue showed strong growth of 40.87% YoY, reaching ₹20.54 crores, driven by Injection Moulding products.

  • Extrusion capacity increased to 25,600 MTPA from 24,000 MTPA, strengthening backward integration.

  • Initiatives to reduce power costs (saving ₹1.5 crores per annum) and interest costs (saving ₹1 crore per annum) through renewable energy investment and debt conversion.

Concerns

  • Overall revenue from operations declined marginally by 1.49% YoY to ₹71.62 crores.

  • Domestic revenue declined 12.11% YoY to ₹51.08 crores, impacted by lower raw material prices impacting realizations and moderation in institutional offtake.

  • The Joint Venture, Olive Ecopak, has accumulated losses of ₹12 crores (RPPL's share), and management expects it will take 1.5 to 2 years to recover these losses and achieve profitability.

Key financials

  1. Revenue from Operations ₹71.62 Cr -1.5%YoY
  2. EBITDA ₹10.3 Cr +13.8%YoY
  3. EBITDA Margin 14.4%
  4. Profit After Tax ₹2.13 Cr +25.4%YoY

What they filed

Q1 FY27: revenue up 24.7%, net profit up 77.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue88 73 90 83 86 −2%72 −1%92 +2%103 +25%
EBITDA10 5 11 10 11 +7%9 +71%14 +36%14 +42%
Net profit3 -1 4 4 5 +51%2 +334%6 +75%7 +78%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹142.73 Cr Total
  • Domestic Revenue ₹51.08 Cr 35.8%
  • Thermoformed Packaging Products ₹38.3 Cr 26.8%
  • Export Revenue ₹20.54 Cr 14.4%
  • Injection Moulding Products ₹17.59 Cr 12.3%
  • Sheet Sales ₹15.22 Cr 10.7%

Order book

low confidence

Pipeline

qualified rfp

Actively engaging with existing and new potential customers for new business, with efforts expected to show results from Q1 FY27. Discussions to restart US exports from Q1 FY27.

Management expects recovery in domestic volumes in Q4 and continued export momentum, particularly in Injection Moulding.

Source: Inferred

Capital allocation

high confidence
  • Capex Capex disclosed
    • Investment in renewable energy SPV ₹2.25 Cr
    • General capex ₹3.5 Cr
    One of the important highlights is signing of term sheet with a renewable power producer to purchase renewable power at lower price under captive arrangement. As per the term sheet, we shall be investing 2.25 Crores approx. in the renewable energy SPV while remaining investment shall be done by the power Company. We expect to save ₹1.5 Crores approx. per annum in power cost once the project starts generating power.
  • Debt Gross ₹97.5 Cr Cost 7.8% · Maturity: 1 year tenure for JPY loan
    • Refinance Converted to foreign currency loan (JPY) at lower rates (2.25%) in December 2025. ₹14 Cr
    • Refinance Planned conversion of balance ₹6 crores to foreign currency loan by end of February 2026. ₹6 Cr
    We are roughly at 95-100 crores, all put together, term loan and cash credit.
  • M&A Olive Ecopak Joint venture · Integrated

    JV continues to make encouraging progress, with increased revenue and EBITDA in Q3 FY26.

    Accumulated losses of ₹12 crores (RPPL's share); expected to take 1.5-2 years to recover losses and achieve profitability.

    Our JV, Olive Ecopak, continues to make encouraging progress. We have Installed capacity of 7 million units per day, making Olive one of the largest integrated producers in the country in this category.
  • Liquidity Liquidity disclosed JV cash flow is expected to be manageable with ₹20 crores revenue, covering depreciation, bank interest, and operations. Expects to break-even at PBT level with ₹23-24 crores revenue.
    I would say, like, with 20 crores of revenue, rough, we will be able to manage the cash flow with respect to at depreciation and the bank interest and the other operations.

Guidance & targets

Cost Savings

  • Annual power cost savings from renewable energy project Cost Savings · per annum · High confidence ₹1.5 Crores
    We expect to save ₹1.5 Crores approx. per annum in power cost once the project starts generating power.

    — Ramswaroop Thard

  • Annual interest savings from debt conversion Cost Savings · per annum · High confidence ₹1 Crores
    and are expected to help us save ₹1 Crores per annum.

    — Ramswaroop Thard

Revenue

  • Olive Ecopak Q4 Revenue Revenue · Q4 · High confidence ₹18-20 crores
    We remain confident of achieving 18 to 20 crores revenue in Q4 and continuing the journey toward profitability.

    — Ramswaroop Thard

  • Plastic business revenue Revenue · FY27 · High confidence ₹360-370 crores
    For, plastic business, we are looking at around... 360 to 370 overcrowd revenue for 27

    — Ramswaroop Thard

  • Paper business revenue Revenue · FY27 · High confidence ₹120-130 crores
    And on the paper business, we are looking at around 120 to 130 crores for, FY27

    — Ramswaroop Thard

  • Paper business revenue Revenue · FY28 · High confidence ₹180-190 crores
    and roughly 180 to 190 crores for FY28.

    — Ramswaroop Thard

Profitability

  • Olive Ecopak PBT Break-even Profitability · next quarter · Medium confidence ₹23-24 crores revenue
    we are expecting 19 to 20 crores in this quarter, and maybe 23 to 24 crores in next quarter. So, with that roughly will be break-even at PBT level.

    — Ramswaroop Thard

Exports

  • Olive Ecopak US Exports Exports · Q1 of FY27 · High confidence start exporting
    we expect to restart discussion with US customers and are positive to start exporting to US from Q1 of FY27.

    — Ramswaroop Thard

Volumes

  • Domestic volumes Volumes · Q4 · Medium confidence recovery
    We have seen improved traction toward the end of the quarter and expect domestic volumes to strengthen in Q4.

    — Ramswaroop Thard

Capacity Utilization

  • Plastic business capacity utilization Capacity Utilization · without any further capex · High confidence ₹400 crores capacity
    our capacity is around 400-odd crore, so the idea will be to reach this capacity without any further capex first.

    — Ramswaroop Thard

Margin

  • Plastic business EBITDA margin Margin · High confidence 15-15.5%

    From 14.5% today

    So, plastic business will be roughly at the margin of 15-15.5% EBITDA, and paper business will be at 16-16.5% EBITDA.

    — Ramswaroop Thard

  • Paper business EBITDA margin Margin · High confidence 16-16.5%

    — Ramswaroop Thard

Working Capital

  • Working capital reduction Working Capital · over next two quarters · High confidence ₹10-15 crores
    But the idea is to reduce the working capital by 10 to 15 crores over next two quarters, that is the whole idea.

    — Ramswaroop Thard

Long-term Growth

  • Plastic and Thermoforming segments revenue Long-term Growth · Medium confidence ₹700-750 crores
    so the next target will be to go to 700-750-odd crores in this two segment itself.

    — Ramswaroop Thard

What to watch in Q4 FY26

Olive Ecopak Q4 Revenue & Profitability

Next quarter (Q4 FY26)
Current Q3 revenue ₹15.69 crores, EBITDA ₹1.15 crores, accumulated loss ₹12 crores (RPPL share)
Target ₹18-20 crores revenue in Q4, break-even at PBT level with ₹23-24 crores revenue in next quarter

Why it matters

Key to JV's financial viability and contribution to RPPL's overall performance.

We remain confident of achieving 18 to 20 crores revenue in Q4 and continuing the journey toward profitability.

Risks & concerns

  • JV Accumulated Losses and Time to Profitability

    high

    The Olive Ecopak JV has accumulated losses of ₹12 crores (RPPL's share), and management estimates it will take 1.5 to 2 years to recover these losses and achieve profitability.

    Management acknowledged

  • Domestic Revenue Decline

    medium

    Domestic revenue declined 12.11% YoY in Q3 FY26 due to lower raw material prices impacting realizations and moderation in institutional offtake, though recovery is expected in Q4.

    Management acknowledged

  • US Tariff Headwinds (Past Impact)

    low

    Past US tariff headwinds made the market challenging, but with 'Tariff ease,' the company expects to restart discussions and exports to the US from Q1 FY27.

    Management mitigated

  • Employee Attrition

    low

    The recent resignation of the HR head was noted, but management stated an internal promotion filled the role and they use ESOPs for retention.

    Analyst acknowledged

Q&A highlights

8 direct
JV Operations and Accounting Treatment Direct
So, the loss has come down, that is a good thing to know, but, in your books, you have completely made the investment zero, because the lost companies offer us one payment during this one. ... For Olive Ecopack, I'll just a minute. ... It's around, 12 crore. ... Our share. ... Okay, so 24 crores, for the total company, JV. ... So, if the company is making 5 crore profit next year, these accumulated losses need to be set up first? ... Yes, yes, of course. ... So, it means that we take at least one to two years for this whole thing to do. To get profit and consolidate the number. ... Yes, yes. For us to get the profitability number at least one and a half year, we'll need to First recovered that loss.

Analyst questioned the accounting method for the JV and clarified the accumulated loss (₹12 crores RPPL share) and the long timeline (1.5-2 years) for the JV to become profitable and recover losses.

Asked by Ajai Augustine

JV Cash Flow Position Direct
Okay, so, since the company is making losses, how is the cash flow position? Is it all running on bank debt, or, like, how is it? ... I would say, like, with 20 crores of revenue, rough, we will be able to manage the cash flow with respect to at depreciation and the bank interest and the other operations. We are not taking our interest, what we have invested. We are, of course, accruing it in the books.

Addressed concerns about the JV's liquidity despite losses, indicating that current revenue levels are sufficient to cover operational cash needs, excluding the invested capital's interest.

Asked by Ajai Augustine

JV Market Focus and Export Strategy Direct
So, just, like, curious to understand, like, this particular product, you are targeting mostly the US, or is it, like, Europe is also a big market for you? ... No, it is domestic. Currently, majority of the sale is coming from the domestic market. ... The majority of the sales is coming from the domestic market. We have around 15% of revenue coming from exports, which is in... from UK, and partly from Middle East but US remains, of course, one of the strong markets, and there's a big demand for this category of the product in US and Europe. ... So that, definitely with this, reduction in the tariff, we expect that business to... Get started, in those markets.

Clarified the primary market for the JV is domestic, with some exports, and highlighted renewed focus on the US market from Q1 FY27 due to tariff ease.

Asked by Ajai Augustine

Employee Retention and HR Head Resignation Direct
And one more, thing, sir this staff attrition point so recently the HR head has also resigned. ... Huh, one HR... Yeah, so we have already... Yeah. ... So, have you found a replacement for them, or still? ... Yeah, no, we... we have internally, promoted a person who was... who was working with us since last 3-4 years, so he has been promoted internally only. ... But generally, as a strategy for the company to retain employees, will you avoid any use of all time? ... We are giving ESOP also to the... to our key people, who are there in the company, apart from the salaries, but as you understand, like, the... after 5-7 years.

Addressed concerns about employee attrition by confirming an internal promotion for the HR role and outlining the company's strategy of using ESOPs to retain key talent.

Asked by Ajai Augustine

Long-term Revenue and Margin Outlook Direct
Can you please, give us some, outlook for, I don't know, I joined the call a little late, so, you know, what's the outlook for the next 2-3 years, both in terms of revenues and margins? ... For, plastic business, we are looking at around... 360 to 370 overcrowd revenue for 27 ... And on the paper business, we are looking at around 120 to 130 crores for, FY27, and roughly 180 to 190 crores for FY28. ... So, plastic business will be roughly at the margin of 15-15.5% EBITDA, and paper business will be at 16-16.5% EBITDA.

Provided clear revenue and EBITDA margin guidance for both plastic and paper businesses for FY27 and FY28, offering a medium-term financial roadmap.

Asked by Sumit Chandwani

Working Capital Management Direct
And also, in terms of working capital, how do you see the working capital playing out? ... But the idea is to reduce the working capital by 10 to 15 crores over next two quarters, that is the whole idea.

Management outlined a specific target to reduce working capital by ₹10-15 crores over the next two quarters, indicating a focus on improving cash flow efficiency.

Asked by Sumit Chandwani

Capex for Future Growth Direct
And in terms of capex, do you need any, capex to achieve these numbers? Say, ballpark, you're saying about 500 crores for a FY 27. ... No, no major capex. No major capex. Around 3-4 crores here and there, but apart from that, no major capex.

Clarified that significant capex is not required for the plastic business to achieve its FY27 revenue targets, as the focus is on utilizing existing capacity.

Asked by Sumit Chandwani

Debt Cost and Hedging Strategy Direct
And that's roughly what's the cost of that? ... 7.5% to 8% on an average out of which, now we have reduced, around 15, 18 odd crores, to 2.25%. ... JPY. Okay, so are you hedging that loan, or it's an unhedged loan? ... We have natural exports, so we are not, hedging it.

Provided details on the average cost of debt, the reduced cost for converted foreign currency loans, and the rationale for not hedging the JPY loan due to natural exports.

Asked by Sumit Chandwani

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Rajshree Polypack Limited reported a marginal 1.49% year-on-year decline in revenue from operations, which stood at ₹71.62 crores in Q3 FY26. Despite this, profitability saw significant improvement, with EBITDA growing 13.82% to ₹10.30 crores. EBITDA margins expanded to 14.38% from 12.45% in the prior year, and Profit After Tax increased 25.38% year-on-year to ₹2.13 crores, reflecting better product mix and operational efficiencies.

Domestic and Export Market Dynamics

Export revenue emerged as a strong growth driver, increasing 40.87% year-on-year to ₹20.54 crores in Q3 FY26, primarily driven by Injection Moulding products. Conversely, domestic revenue experienced a 12.11% year-on-year decline, reaching ₹51.08 crores. This decline was attributed to lower raw material prices impacting realizations, particularly in sheet sales, and a seasonal moderation in institutional offtake. Management anticipates a recovery in domestic volumes in Q4 FY26.

Product-Wise Performance and Capacity Expansion

Injection Moulding products demonstrated robust growth of 37.39% year-on-year, with sales reaching ₹17.59 crores, largely due to strong export demand. Thermoformed packaging products maintained stable sales at approximately ₹38.30 crores. Sheet sales, however, were lower at ₹15.22 crores, reflecting an 18.43% year-on-year decline. During the quarter, the company increased its Extrusion capacity to 25,600 MTPA from 24,000 MTPA, enhancing backward integration and positioning for higher volumes.

Operational Efficiencies and Cost Management

The company achieved an improvement in its Cost of Goods Sold (COGS), which decreased from 60.64% to 56.41%. Employee costs increased due to annual increments and the commencement of Unit III operations, partly offset by savings in job work charges. Strategic initiatives include an investment of approximately ₹2.25 crores in a renewable energy SPV, projected to save ₹1.5 crores annually in power costs. Additionally, the conversion of ₹20 crores of loans to lower-rate foreign currency loans (₹14 crores converted in Q3, ₹6 crores planned for Q4) is expected to save ₹1 crore annually in interest.

Joint Venture (Olive Ecopak) Update

The joint venture, Olive Ecopak, reported Q3 FY26 revenue of ₹15.69 crores, a significant increase from ₹12.05 crores in Q2. EBITDA improved to ₹1.15 crores, with margins of 7.33%. Despite this progress, the JV has accumulated losses of ₹24 crores, with Rajshree Polypack's share being ₹12 crores. Management expects the JV to achieve break-even at the PBT level with ₹23-24 crores revenue in the next quarter and is positive about starting exports to the US from Q1 FY27 following tariff ease.

Future Outlook and Growth Strategy

For FY27, the company projects plastic business revenue of ₹360-370 crores with an EBITDA margin of 15-15.5%, and paper business revenue of ₹120-130 crores with an EBITDA margin of 16-16.5%. The goal is to utilize the existing plastic capacity of ₹400 crores without significant additional capex. Long-term, the company aims to grow the plastic and thermoforming segments by another 40-50%, targeting ₹700-750 crores in these two segments, while also exploring new product categories.

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